Professional Documents
Culture Documents
W”
Bayerische Motoren Werke AG
Type Aktiengesellschaft
Founded 1916
Headquarters Munich, Germany
Dr. Norbert Reithofer, Chairman and
Key people
CEO
Industry Automotive
Automobiles
Products
Motorcycles
Revenue €49 billion (2006)
Employees 107,079 (2007)
MINI
Subsidiaries
Rolls-Royce
DE: Freude am Fahren
Slogan US: The Ultimate Driving Machine
Global: Sheer Driving Pleasure
Website www.bmw.com
Table of Contents
“B.M.W”--------------------------------------------------------------------------------------------------------------------1
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TABLE OF CONTENTS------------------------------------------------------------------------------------------------2
EXECUTIVE SUMMARY:---------------------------------------------------------------------------------------------4
WEAKNESSES:.......................................................................................................................................6
THREATS................................................................................................................................................6
ADVERTISING OPPORTUNITIES:--------------------------------------------------------------------------------------------6
OPPORTUNITIES:.................................................................................................................................6
STRENTHS:............................................................................................................................................6
KEY PLANNING DECISIONS:---------------------------------------------------------------------------------------7
ADVERTISING OBJECTIVES:------------------------------------------------------------------------------------------------7
TARGET AUDIENCE:-------------------------------------------------------------------------------------------------------7
PRODUCTION POSITION:--------------------------------------------------------------------------------------------------12
IMPLEMENTATION TACTICS:-----------------------------------------------------------------------------------13
EVALUATION:----------------------------------------------------------------------------------------------------------14
BUDGET:-----------------------------------------------------------------------------------------------------------------14
SALES PROMOTION:-----------------------------------------------------------------------------------------------------18
PUBLIC RELATIONS:-----------------------------------------------------------------------------------------------------18
DIRECT MARKETING:-----------------------------------------------------------------------------------------------------19
PERSONAL SELLING:-----------------------------------------------------------------------------------------------------19
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Executive summary:-
BMW (Bayerische Motoren Werke Aktiengesellschaft) was founded in 1916 and has been publicly traded
since 1969. The company produces, and markets, a varied range of higher end sporty cars and motorcycles.
BMW has also manufactured the first passenger car running on hydrogen ready for common use, although
the production figures are limited by the lack of a respective filling station net. In addition to cars and
motorcycles, BMW operates an aircraft engine division under the brand name of Rolls Royce.
The company has worldwide subsidiaries and manufacturing plants in Germany, Austria, the UK, the USA,
Mexico, Brazil, South Africa, Egypt, Thailand, Malaysia, Indonesia, the Philippines and Vietnam. The
company also operates its own financing company, which offers financing for vehicles. As the trend of
purchasing of new vehicles is constantly increasing in Pakistan & people attention towards buying high
performance cars that has long time service & high performance is increasing continuously. There are a
number of competitors still that are yet to be faced. BMW will present high performance to its consumers
in terms of driving & pure sheer driving experience that they will remember for the rest of their life.
BMW is to be found as a high performance & luxury car that will attract a niche & an executive class target
audience towards it. The main focus in our advertising will be to place BMW as a far luxurious & high
performing car, which provides a pleasurable driving experience and high performance all together. To
inspire & encourage people towards BMW the advertisement will be displayed in posh and niche market
segments where we can get maximum reaction from the target audience. The purpose of BMW ad will also
be to increase market awareness & establishing a new brand image in the eyes of people who belong to
corporate or executive class & have a high buying power.
To attain the utmost retort, the ad will be displayed in leading high class print media & broadcast media, In
order to break in the message to the target market.
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About Dewan group:-
Dewan Farooque Motors Limited (DFML) was established in 1998 with the signing of Technical
Licensing Agreement (TLA) with Hyundai Motor Company of South Korea for the distribution
and progressive manufacture of Hyundai vehicles, their spare parts and accessories in Pakistan.
Hyundai is the largest business group of South Korea and contributes 25% to the GDP of South
Korea.
DFML is an important addition in the family of Dewan Mushtaq Group (DMG). It is fully owned
by the group and local Pakistani investors showing the commitment of DMG with the people of
Pakistan. The company is also listed on all the stock exchanges of Pakistan.
DFML is committed to offer cost competitive products offering superior value for money in a
market that is dominated by relatively expensive Japanese products of outdated design and
technology.
MISSION STATEMENT:
The mission of Dewan Mushtaq Group is to be the finest Organization, and to conduct business
responsibly in a straightforward way. Our basic aim is to benefit the customers, employees and
shareholders, and to fulfill our commitments to the society. Our hallmark is honesty, initiative
and teamwork of our people, and our ability to respond effectively to change on all aspects of life
including technology, culture and environment. We will create a work environment, which
motivates, recognizes, and rewards achievements at all levels of the organization, because “IN
ALLAH WE TRUST & IN PEOPLE WE BELIEVE”
We will always conduct ourselves with integrity and strive to be the best.
Situation analysis:-
BMW, an abbreviation for Bavarian Motor Works, is a multi-
national company that produces high quality cars and
motorcycles. BMW was founded in Germany, and has expanded
into new markets worldwide in a number of countries such as
South Korea, the USA and the UK. The BMW name is
synonymous with luxury, craftsmanship, and all round
excellence.
The automobile segment is the largest developing sector in the world trade. It is the major driver of
economic growth and business activities, offering exceptionally good sales opportunities. The total number
of vehicles in Pakistan is over 4.9 million units. The annual sales demand is estimated at 300,000 units.
This gives an advantage to overseas automobile companies to invest in such market. The local government
also encourages international brands to open their franchises here, offering a promising market for vehicles
& accessories with good sales opportunity to BMW to launch in such market. However it has to face a
number of other brands already existing in country.
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WEAKNESSES:
THREATS
• New entrants of international brands in the market.
• Price.
• Rising fuel costs.
• local auto industry
• lack of proper servicing.
• Attitude to traditional values
Advertising Opportunities:-
OPPORTUNITIES:
• Development of automotive sector
• Increase of some new brands.
• Expansion of existing business sector
• the potential for buying luxury goods especially among young people
• Market open up to imports.
• High growth & demand in market.
STRENTHS:
• Good industrial relations
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• Strong brand name representing quality & reliability.
• Symbol of executive class.
• Strategic location of County
• Highly educated people.
• Vibrant business community.
• Strong local social conscience and value systems
• A willingness among organisations and agencies to foster co ordination and co operation.
• Good entrepreneurial skill
In order to deliver BMW advertising messages of outstanding quality, BMW decided to come up
with a unique way of reaching its target
audience. BMW makes cars that are a cut above
what is produced by the mass manufacturers like
the Japanese Toyota, and Nissan, the Italian Fiat,
the French Peugeot, the American Ford. But it is
really questionable that is its advertisement
possible in Pakistan or not, since it has to fetch a
new place in the minds of the consumers here &
it had to develop its target market.
Target audience:-
A new ad campaign from the carmaker de-emphasizes the brand's performance to attract a wider,
affluent audience. It’s hard to believe, but after all these years there are still a great many
consumers, specifically luxury-car buyers, who associate BMW with the yuppie phenomenon of
the 1980s. This ad campaign was launched in US, made a successful outcome in there but here
the picture is entirely different
In Pakistan after 9/11 there has been an immense increase in economy of Pakistan. A lot of
foreign aids & international community interest in Pakistan has developed. Pakistan is now
competition with other global economy around the world. This has made a huge Impact on the
lives of people living here. Since the increase in economy many of finest & high class
organizations has established there offices here. These people prefer excellence in demand. For
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them price is not an important factor to be considered. These are the people that make up the
target market of BMW in Pakistan. Consumer today does not negotiate on price but on the quality
& satisfaction that they are getting from that product. Style & performance all go together.
People tend to buy those products that does not only satisfy there needs but give them an aspect
of their self actualization need. In order to find the target audience in Pakistan, BMW has to work
hard to accomplish that. Since Pakistani automotive market is highly infiltrated by local & some
international brands, therefore to attain target market will a little bit difficult. However BMW can
target only the niche audience of the market. Consumers can be grouped into two broad segments
of unequal size. Business organization consumers & personal use consumers. The smaller
business/organization segment includes industrial, reseller, Government and not-for-profit
consumer markets. The larger personal use consumer market includes several million individuals.
Although many marketers direct their offers toward a mass market, most group consumers into
segments then target the segments with the greatest purchase potential.
The major competitive rivals it can face in Pakistan are Toyota, Honda, Mercedes and Range
Rover. Since this motor brands are already in Pakistan therefore it will be hard to find target
market audience share in Pakistan. However BMW can satisfy new segments of consumers who
will pay premium price for differentiated features and styles.
Keeping all the aspects in minds we can assume that the target market of BMW will not be whole
of the automobile market in Pakistan but only niche segments of the market who have
superfluous money or people who are belonging to executive or high class. Theses people are the
one who have strong buying power have the tendency to pay marginal if they want to achieve
there satisfaction. Following are some attribute of the target market that will be followed by
BMW Pakistan.
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• Consumers living in high-class areas.
• International organizations working in Pakistan.
• Foreign diplomats of embassies & consulates.
• Business community.
• Fashion designers.
• Multinational organizations executives.
As far is competition is concerned there are already a lot of automobile manufacture local &
international that are present here. But still BMW carries a lot of differential factors which makes
it outclass from other. BMW definitely have a extra advantage as far as quality & performance is
concerned. After government easing in some import duty matter however a lot of brands have
emerged & considerably a lot of new franchises has been established by some international
brands. BMW still has what it takes to be much more superior then other brands. BMW not only
carries quality but it also includes an executive class experience in its driving pleasure.
A brief analysis of market has shown up results that, since our target market is niche segment.
Therefore the results are as follow.
Comparison
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Factors:
Fuel √ √ √ √
economy
Anti theft √ √ √ √
& locks
BMW might say that its competitive advantage resides in its internal
processes for designing unique automobiles. Indeed, there has been a
“BMW-ness” to its designs that other companies’ processes have not
successfully replicated. The process of designing a new automobile is
fixed-cost intensive and historically has entailed extensive interaction and
collaboration among large groups of engineers. However, in order to
reduce costs and improve its ability to design safe automobiles, BMW
recently has created a system that enables its engineers to use computer
simulations to crash-test the cars they design—before physical models are
built.
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many things that once were accomplished only through proprietary
problem-solving routines.
The majority of BMW’s success is attributed to the development of a consistent marketing policy,
the 'market niche' strategy. Societal values are changing rapidly. Society will increasingly take its
cue from Generation X'ers and dot-comers rather than the baby boomers who have dominated its
thinking for most of four decades. Associated with that demographic shift will be a return to the
appreciation of self-reliance and cooperation. Self-reliance because the traditional safety
platforms such as Social Security and pensions will no longer exist, and cooperation because it
involves group action that, in turn, is the optimal strategy for the use of scarce resources.
Family issues such as long-term health care, day care, and finace will remain dominant issues up
until the end of the decade. Generation X and dot-com will have major effects in the future.
Members of the dot-com generation, now entering their 20s, are proving to be even more
business-oriented.
On the face of it this looks to be a reasonably safe venture. It makes perfectly good sense to own
a smaller car in view of the rising fuel costs. Its image, appeal and halo have included its size as
well. As BMW is not only a car with a good personality but it also delivers performance with
itself.
BMW has been trumpeting for decades about how wonderful its cars are to drive. The behind-
the-wheel experience in the 530d is undoubtedly a memorable one. The ride is a little too thumpy
for a luxury cruiser, but the car doesn't carry its own weight with quite the grace you would
expect of a sports saloon. It also provides enormous amounts of grip. BMW's is a car is in fact
both a luxury cruiser and a sports saloon.
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It carries a symbol of executive & pure quality assured. As executive people are termed as high
class & highly educated people that strive for excellence & greatness, same way is with BMW
it’s not like other car. It delivers high quality of driving pleasure & high security for family. It
will be perceived as a high performance & dream car in people of Pakistan here. By seeing the
following picture one can easily evaluate the personality that BMW carries.
• It carries recognition and status, which people want to be seen important or liked.
• It shows power, which people need to be powerful.
• It shows freedom.
• It has got a fun sense of adventure.
Production position:-
For over three decades, BMW built its brand to be synonymous with performance and the driving
experience. The brand character and tone (serious, focused, and engaged) remained unwavering
for the most part, while drivers enjoyed innovative, high-performance-yet-accessible vehicles that
connect them with the road, rather than isolating them from it. BMW created a highly coveted
brand franchise by successfully cultivating an extremely loyal following of luxury-performance
automobile consumers, especially in the face of stiff competition from Germany and Japan.
Looking across the global automotive industry landscape, the premium automobile manufacturer
from Munich has the most to lose, should the integrity of its brand begin to falter. While
developing innovative brands and designs can satisfy new segments of consumers who will pay
premium dollars for differentiated features and styles.
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target position in Pakistan. BMW succeeded in differentiating its product line to address the
growing needs of its target audience.
BMW has maintained its leadership brand position for many decades. Its success is the result of a
consistent strategy created and implemented by Interbrand that is oriented towards meeting the
needs of customers and an informed public. The resulting brand personality has helped redefine
the company’s positioning from a manufacturer of cars to a provider of individual mobility with
which customers identify.
While this move may facilitate some marketing synergies and unite today’s broader product
lineup under a more accessible brand, it seems to dilute the power of the Ultimate Driving
Machine associated with BMW’s core sedan offerings. It’s always interesting to see a tried and
true brand change course. At the end of the day, while the designers and marketers tweak the
Machine, hopefully they’ll continue to steer the Ultimate Driving brand down a road that’s true to
its heritage.
The image of BMW in Pakistan is absolute clear, as its brand name clearly states exclusiveness &
pure performance only a small effort is needed to position this product in the minds of consumer
here in Pakistan. Although such global brand are denoted as high-class & corporate executive
symbols. BMW will be positioned here in Pakistan as a car that not only provides status but
performance & pure sheer driving to its target consumers. Especially business class executive
love such types of class that have high durability & performance.
We can position this brand in Pakistan as such outstanding proclamations which can be;
“Chosen”
Implementation Tactics:-
From strategy, to research, to design, to a
comprehensive global implementation, there
are four unwavering values that define the
BMW brand, and which have been central to
its success: dynamism, aesthetics, exclusivity
and innovation. These values are consistently
communicated across four inter-related
contexts: corporate communications, corporate
design, corporate structure and corporate behavior. In all contexts, the image platform is applied
to the entire spectrum of dealer and customer materials, collateral, showroom interior design,
tradeshow environments and manufacturing facilities.
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BMW’s values are relevant and differentiated to consumers in all parts of the world. Interbrand
has been helping BMW establish and solidify its leadership brand position for 25 years. In order
for its implementation, a continuous supervision on execution of this plan top class advertisement
company & media vendors will be hire to promote this brand in the automobile industry of
Pakistan. All the management needs to focus on this assignment as it is a really costly
assignment, its mismanagement will cost the organization a big loss.
The focus on target market & brand awareness will be stressed throughout the plan. Best
entrepreneur will be hire to make sure there brand will make its impact on the target audience &
the target message delivered. The advertisement will be aired on right time, on the right place, to
the right audience. Close market information will be gathered in order for the successful launch
for this brand. Only limited channels will be
selected for its distribution & advertisement.
Timely execution of necessary plans will be
implemented. Cross hurdles & inappropriate
interferences will be avoided. One more
tactic that can be used in order for better
product positioning & advertising is by
analyzing the time of year in which people
buy car the most or less. In case of Pakistan
people love to buy car in new years, or some
people wait for budget in order to get the
future forecast of duties & taxes. These factors can help considerably hard in implementing target
goals.
Evaluation:-
Since BMW is totally new in
Pakistan regarding automobile
seller. Its need a extensive
research of the market in which is
about to launch its product.
Careful analysis of market trends
& dynamics must been seen in
order to make a positive impact on
the market, which could help in
deciding that will advertising will create desired results or not. Evaluation could be done by
analyzing sale of international brands here. Analysis of consumer buying behavior can help
company figure out what question do people have in there mind before buying a new car for
themselves. This type of study can help the company evaluate the result of the advertisement that
will impact there target audience.
Budget:-
In order to launch a successful advertisement budget is the one thing that comes in mind in order
to create a perfect advertisement that can cost little & impact larger. But since it is a new brand, a
large number of revenue will be used by BMW to launch its advertisement campaign in Pakistan.
Each segment will be allocated with different amount for its implementation. In order to project
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the budget for the next year (2008), the budget will be prepared according to the intensity &
events that will or might take place during that year
Jul-Sept Year
Activity Jan-Mar (Rs) Apr-Jun (Rs) Oct-Dec (Rs)
(Rs) (Rs)
Advertisemen 1,000,000 500,00 200,000 200,000 1,900,000
t: through (many (few billboards) (few (few billboards)
billboards. billboards) billboards)
Advertising:
(broadcast media) 1,000,000 200,000 600,000 700,000 2,500,000
1. Geo network (high share of (much lower (slightly low
voice) share of
voice)
500,000 1,500,000
2. Hum TV 700,000 0 300,000 (30 min)
(1 hour)
Total 5,900,000 2,2000,000 1,200,000 2,900,000 12,200,000
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Getting the audience to take the time to interact, or simply pay attention to the ad, is largely
dependant on the quality of your creativity of the ad. The main appeal of a creative advertisement
is to get the right people in a more meaningful way.
In international countries the ad of BMW carried ad outmost pulling or stopping power that
carried the audience towards it self. Here in Pakistan the creativity can be created by analyzing
the enviromentr in which the it exists. Since Pakistan is running towards a boosting economy
there international establishment in the country is increasing which means that a lot of
multinational companies, firms, banks & organizations are setting up here. Creating & building
awareness of exclusiveness & corporate culture. Therefore building a creative advertisement
cannot be hard.
Since BMW targets only niche & corporate segments of target market therefore the creative
strategy that BMW can use can be like this.
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effectively target our required target audience & can easily penetrate the message through. BMW
would be using a variety of media mix strategies that can communicate the message with the
target audience & can convene our objective professionally & efficiently.
Since for advertisement of BMW there are following available resources that can effectively
target the audience.
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Other Communication Tools:-
Sales Promotion:-
Sales promotion offers an “extra incentive”to take action. It gives the product or service
additional value & motivate consumers to repond towards it. Sales promotion is less
expensive then advertising, as it speaks to current needs of consumers to receive more
value from products. It can include best prices, price deals, speciality advertisement test
drives. Their purpose is to pull the product through the consumer towars itself. In order to
increase sales promotion for BMW, the ad must contain a little essence of sales objective
in it also. No business survives without revenue. Every business needs considerable
output to run the business.
Public Relations:-
Public relations are a management fuction that communicates to & with various publics
to manage an organization image & reputation. BMW can use two PR programes that
will be needful that are marketing public relations (MPR) & corporate public relatons. By
using the following functu=ions effectively BMW can reach its target sales that will
become more helpful after its advertisement.
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Direct marketing:-
Although some direct marketing efforts can also be made by BMW Pakistan. Through
direct marketing BMW can receive a number of evaluation results of its advertisement
from its consumers. This would be the job of BMW sales personals to accomplish this
duty. As in Pakistan direct marketing in also in scope. Through direct marketing sales
personals can easily reach its target consumers & complete their target goals.
Personal Selling:-
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